Prepaid Finance Charge Credit Settings

The Encompass Compliance Service (ECS) will treat an amount submitted as a "rebate" (a fee submitted to ECS as a negative amount, paid by the borrower with the appropriate paid to party and fee mapping to cause ECS to treat the amount as a prepaid finance charge), in one of the following ways:

• Apply rebate until Amount Financed equals the Note Amount (Default)

A fee submitted as a negative prepaid finance charge offsets a fee submitted as a positive prepaid finance charge. ECS allows this until the Calculated Federal Amount Financed equals the note amount.

• Apply rebate even if the Amount Financed exceeds the Note Amount - For all Negative Prepaid Finance Charges

A fee submitted as a negative prepaid finance charge offsets a fee submitted as a positive prepaid finance charge. If the sum of all prepaid finance charge fees is less than $0.00, ECS allows that negative amount to increase the Calculated Federal Amount Financed above the note amount.

• Apply rebate even if the Amount Financed exceeds the Note Amount - For Negative Prepaid Interest Only

A fee submitted as a negative prepaid finance charge offsets a fee submitted as a positive prepaid finance charge. If the sum of all prepaid finance charge fees is less than $0.00, ECS allows only negative prepaid interest fee to increase the Calculated Federal Amount Financed above the note amount.

• Apply rebate even if the Amount Financed exceeds the Note Amount - For all Negative Prepaid Finance Charges excluding Negative Prepaid Interest

A fee submitted as a negative prepaid finance charge offsets a fee submitted as a positive prepaid finance charge. If the sum of all prepaid finance charge fees is less than $0.00, ECS allows all negative prepaid finance charge fees, except the negative prepaid interest, to increase the Calculated Federal Amount Financed above the note amount.